Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on home-entertainment hardware and services
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on home-entertainment technology, 2021
- Opportunities and challenges
- High-end TVs replace older models, helps keep families content with their entertainment
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- Figure 2: Most recent TV purchase – connectivity, resolution, and size, 2020 and 2021
- In response to pandemic, studios pivot to bring more content direct to consumers
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- Figure 3: Attitudes toward home-entertainment tech – digital rentals vs movie theaters, by party hosting plans and parental status, 2021
- Virtual reality headsets finally find a foothold
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- Figure 4: Entertainment device ownership and interest – VR headset, by generation, 2021
- Global computer chip shortage puts pressure on manufacturers
- Red-hot housing market and increase in first-time buyers spurs spending on the home
The Market – Key Takeaways
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- Significant growth for home entertainment technology underway for 2021
- Spending on TVs drives rising hardware sales
- Streaming spending grows while live TV stems yearly declines
- Lowering concern over COVID-19 could be upended by the Delta variant
- Government stimulus and relief spending bolsters consumer spending
- Global computer chip shortage limits inventory and raises prices
Market Size and Forecast
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- 2021 will be a banner year for home entertainment spending
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- Figure 5: Total US consumer expenditures and fan chart forecast for home entertainment hardware and services, at current prices, 2016-26
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- Figure 6: Total US consumer expenditures and forecast for home entertainment hardware and services, at current prices, 2016-26
- Impact of COVID-19 on home entertainment
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- Figure 7: Worry about COVID-19 exposure and lifestyle disruption, March 2020 – July 2021
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- Figure 8: Comfort going to the movies, May 2021 – July 2021
- Figure 9: Comfort going to a live event, May 2021 – July 2021
Segment Performance
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- Home entertainment hardware spending expected to surge for 2021
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- Figure 10: Total US consumer expenditures and fan chart forecast for home entertainment hardware, at current prices, 2016-26
- Figure 11: Total US consumer expenditures and forecast for home entertainment hardware, at current prices, 2016-26
- Streaming services drives spending
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- Figure 12: Total US consumer expenditures and forecast for home entertainment services, at current prices, 2016-26
- Figure 13: Total US consumer expenditures and forecast for home entertainment services, at current prices, 2016-26
Market Factors
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- Preventative measures return as COVID-19 variants rapidly spread
- Government stimulus and relief packages sustained household spending
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- Figure 14: CBO estimates of US GDP and effects of pandemic stimulus legislation, Q1 2020 – Q4 2021
- Figure 15: Personal consumption expenditures, Q1 2020 – Q2 2021
- Home sales surge 20% in 2020
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- Figure 16: US home annual home sales, 2010-20
- Figure 17: US home monthly home sales, January 2010 – June 2021
- Figure 18: Share of first-time home buyers, by age, 2020
- Computer chip shortage impacting key categories in home entertainment
- TV prices increase as much as 30% for high-end models
- Retailers unable to meet demand for the latest video game consoles
Companies and Brands – Key Takeaways
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- Samsung leads global TV market for 15th consecutive year
- LG targets high-end consumers with Signature line and first rollable TV
- Netflix’s North American memberships stall while revenues grow
- Disney continues to innovate and focus on streaming platforms
- Facebook’s Oculus leads VR market despite recalls on the Oculus Quest 2
- Sony and Microsoft battle it out in console sales and game subscriptions
Market Share
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- Samsung’s TVs lead the global market
- Xbox Live passes 100 million monthly active users
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- Figure 19: Daniel Ahmad Xbox Series X|S estimates, July 2021
- PlayStation Plus reaches 47 million active subscribers
- Sony announces it has secured computer chips for PS5 production targets
- Netflix North American paid memberships plateau in first half of 2021
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- Figure 20: Netflix North American revenues and paid memberships, 2017 – Q2 2021
- Disney suite of streaming services sees major success
- Facebook’s Oculus leads VR market
- Alternative VR brands can erode Facebook’s leading position
Competitive Strategies and Opportunities
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- Figure 21: Mintel Trend Drivers and supporting Pillars – Technology
- Disney makes ESPN+ available on its Hulu platform
- AT&T spins off WarnerMedia to Discovery
- Facebook trials ads in Oculus VR environment
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- Figure 22: Blaston Twitter post, June 2021
- LG targets the ultra-high-net-worth with its Signature line and luxury brand collaboration
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The Consumer – Key Takeaways
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- TVs are getting bigger, sharper and smarter
- Gen Z and Millennial gamers drive VR headset ownership
- Half of consumers plan to host a party/gathering this year
- Six in 10 consumers spent more time at home due to COVID-19
- Robust demand for connected home entertainment devices
- Nearly half fall under the Digital Entertainers consumer segment
Most Recent TV Purchase
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- One in five households purchased a TV in the past six months
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- Figure 23: Most recent TV purchase – timing, 2020 and 2021
- Younger men drive TV purchasing
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- Figure 24: Most recent TV purchase – timing, by gender and age, 2021
- Household income has minimal impact on purchase rates
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- Figure 25: Most recent TV purchase – timing, by household income, 2021
- TVs are getting larger, sharper and more connected
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- Figure 26: Most recent TV purchase – connectivity, resolution, and size, 2020 and 2021
- Middle class splurges on high-end TVs despite price increases
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- Figure 27: Most recent TV purchase – connectivity, size and resolution, by household income, 2021
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- Figure 28: TVs purchased within the past six months – connectivity, size and resolution, by household income, 2021
- Hispanic households on par with White households in high-end TV purchasing
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- Figure 29: Most recent TV purchase – connectivity, size and resolution, by race/Hispanic origin, 2021
Entertainment Device Ownership and Interest
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- Streaming devices lead overall household device ownership
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- Figure 30: Entertainment device ownership and interest, 2021
- Gen Z and Millennial gamers will drive household VR adoption
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- Figure 31: Entertainment device ownership and interest – VR headset, by generation, 2021
Party Hosting Plans
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- Nearly half plan to host people at home within the next six months
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- Figure 32: Party hosting plans within the next six months, 2021
- Fathers most likely to host a gathering in the next six months
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- Figure 33: Party hosting plans within the next six months, by gender, age, marriage and parental status, 2021
- Party hosting correlates with household income and device ownership
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- Figure 34: Party hosting plans within the next six months, by household income, 2021
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- Figure 35: Entertainment device ownership and interest, by generation, 2021
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- Figure 36: Most recent TV purchase – connectivity, size and resolution, by plans to host a party/gathering in the next six months, 2021
Devices for Party Hosting
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- Big screen TVs top devices for party hosting
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- Figure 37: Devices for party hosting, 2021
- Gen Z most interested in gaming, karaoke and social media integration
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- Figure 38: Devices for party hosting, by generation, 2021
- Younger women interested in audio-based devices and services
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- Figure 39: Devices for party hosting, by gender and age, 2021
- Ideal home entertainment system for hosting
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- Figure 40: TURF Analysis – party devices, 2021
Important Features of an Entertainment Room
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- TV, furniture and sound systems are the most important features
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- Figure 41: Important features of an entertainment room, 2021
- Older consumers focus on TV and sound – while younger consumers consider video games as an important feature
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- Figure 42: Important features of an entertainment room, by age, 2021
- Presence of children elevates value of video games for entertainment
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- Figure 43: Important features of an entertainment room, by parental status, 2021
Home Entertainment Behaviors
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- Six in 10 consumers stayed home more due to COVID-19
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- Figure 44: Home entertainment behaviors, 2021
- Parents far more active in the home entertainment space
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- Figure 45: Home entertainment behaviors, by parental status, 2021
- Party hosts plan to spend less time at home in the next 12 months
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- Figure 46: Home entertainment behaviors, by party hosting plans, 2021
Attitudes toward Home Entertainment Tech
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- TV is essential for a home entertainment room, but not necessary for every type of party
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- Figure 47: Attitudes toward home entertainment tech – TVs, 2021
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- Figure 48: Attitudes toward home entertainment tech – TVs, by gender and age and party hosting plans, 2021
- Saving money is a top reason – but not the only reason – for spending leisure time at home
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- Figure 49: Attitudes toward home entertainment tech – Home vs public, 2021
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- Figure 50: Attitudes toward home entertainment tech – digital rentals vs movie theaters, by party hosting plans and parental status, 2021
- Demand for connected devices growing
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- Figure 51: Attitudes toward home entertainment tech – speakers and devices, 2021
- Figure 52: Attitudes toward home entertainment tech – speakers and devices, by gender and age, 2021
Consumer Segmentation – Attitudes toward Home Entertainment
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- Figure 53: Home entertainment technology consumer segments, 2021
- Disconnected Recluses (23%)
- Characteristics
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- Figure 54: Profile of Disconnected Recluses, 2021
- Opportunities
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- Figure 55: Attitudes toward home entertainment tech – home vs public and party hosting plans, by consumer segments, 2021
- Digital Entertainers (48%)
- Characteristics
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- Figure 56: Profile of Digital Entertainers, 2021
- Opportunities
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- Figure 57: Devices for party hosting, by consumer segments, 2021
- Outside Leisure Seekers (29%)
- Characteristics
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- Figure 58: Profile of Outside Leisure Seekers, 2021
- Opportunities
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- Figure 59: Home entertainment behaviors, by consumer segments, 2021
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- Figure 60: Attitudes toward home entertainment tech, by consumer segments, 2021
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Forecast
- Consumer survey data
- Consumer qualitative research
- Marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 61: Total US consumer expenditures and forecast for home entertainment hardware and services, at inflation-adjusted prices, 2016-26
- Figure 62: Total US consumer expenditures and forecast for home entertainment hardware, at inflation-adjusted prices, 2016-26
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- Figure 63: Total US consumer expenditures and forecast for home entertainment services, at current prices, 2016-26
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